Correlation Between Sealed Air and XL Fleet
Can any of the company-specific risk be diversified away by investing in both Sealed Air and XL Fleet at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Sealed Air and XL Fleet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sealed Air and XL Fleet Corp, you can compare the effects of market volatilities on Sealed Air and XL Fleet and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Sealed Air with a short position of XL Fleet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sealed Air and XL Fleet.
Diversification Opportunities for Sealed Air and XL Fleet
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sealed and XL Fleet is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Sealed Air and XL Fleet Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XL Fleet Corp and Sealed Air is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Sealed Air are associated (or correlated) with XL Fleet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XL Fleet Corp has no effect on the direction of Sealed Air i.e., Sealed Air and XL Fleet go up and down completely randomly.
Pair Corralation between Sealed Air and XL Fleet
If you would invest 101.00 in XL Fleet Corp on September 2, 2024 and sell it today you would earn a total of 0.00 from holding XL Fleet Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Sealed Air vs. XL Fleet Corp
Performance |
| Timeline |
| Sealed Air |
| XL Fleet Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sealed Air and XL Fleet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sealed Air and XL Fleet
The main advantage of trading using opposite Sealed Air and XL Fleet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sealed Air position performs unexpectedly, XL Fleet can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in XL Fleet will offset losses from the drop in XL Fleet's long position.| Sealed Air vs. Avery Dennison Corp | Sealed Air vs. International Paper | Sealed Air vs. Sonoco Products | Sealed Air vs. Packaging Corp of |
| XL Fleet vs. Nasdaq Inc | XL Fleet vs. Sphere Entertainment Co | XL Fleet vs. Verde Clean Fuels | XL Fleet vs. Small Cap Premium |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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